No air fare increase for holidays

MANILA, Philippines — Air fares will not increase for the holiday season despite the recent spike in jet fuel prices.

The maximum allowable fuel surcharge level which airlines can impose will remain the same until the end of the year, according to the Civil Aeronautics Board (CAB).

The CAB, in its latest advisory, said the passenger fuel surcharge for domestic and international flights from Nov. 1 to Dec. 31, 2021 would stay at Level 2.

From Level 1 last July and August, the CAB had previously raised the passenger fuel surcharge to Level 2 for the September to October period, after the price of jet fuel averaged $78.75 per barrel during the June to July evaluating period.

The applicable fuel surcharge level for the next two months was determined by the CAB based on the average price of jet fuel during the months of August and September.

“For August to September 2021, the price of jet fuel averaged $80.22 per barrel, with the US dollar exchange rate of P50.19 for the same period. This is equivalent to P25.32 per liter, which corresponds to Level 2 of the passenger fuel surcharge matrix,” the CAB said.

Under Level 2 of the fuel surcharge matrix, airlines are allowed to impose an increase of P45 to P171 for domestic flights, and P218 to P2,076 for international flights.

The CAB said airlines wishing to impose or collect fuel surcharge for the period can do so, but with fuel surcharge rates not exceeding the allowable level.

Local and foreign airlines are allowed to collect fuel surcharge rates that are lower than the stated level for the given two-month period if they choose to do so depending on how they want to compete with other carriers.

The CAB suspended “until further notice” the passenger fuel surcharge on domestic and international flights in August last year as oil prices plunged as the COVID-19 pandemic significantly affected demand.

Last July, however, it approved its reimposition as fuel prices started rising again.